The UK automotive industry received a major boost today with news of a £125 million investment in Vauxhall’s car plant, creating thousands of new jobs.

The car giant announced that the next generation of its Astra model will be built at the firm’s factory in Ellesmere Port, Merseyside, guaranteeing the future of the plant into the next decade.

Around 700 new jobs will be created at the site, with another 3,000 positions in firms which supply the plant with parts and services.

Vauxhall chairman Duncan Aldred, who first worked at the Ellesmere Port factory 20 years ago as a graduate, said it was a ``historic day'' for Vauxhall.

The factory will move from two to three shift working to build the new Astra, while "unprecedented" levels of flexibility will be introduced.

Confirmation of the investment followed a 94% vote in favour of a new pay and conditions package by the 2,100 workers at the site.

Mr Aldred said: "This is great news for the Ellesmere Port plant, our employees, the local community, our suppliers, the Vauxhall brand and the UK. We have been able to develop a responsible labour agreement that secures the plant’s future.

"This is assisted by the Government’s industrial strategy, increasing its focus on the manufacturing sector and creating ideal ground for companies to build up long-term investments.

"With Ellesmere Port’s proven build quality and a new agreement that ensures excellent cost competitiveness, this facility will provide additional employment and, as the lead plant for the next-generation Astra, will be one of the cornerstones of our European manufacturing footprint."

Secretary of State for Wales, Cheryl Gillan welcomed the announcement.

“This announcement will come as very welcome news for the economy and the hundreds of employees from North Wales who make the journey to the Ellesmere Port plant every day.

“The news is testament to the exemplary skills of the workforce, and an excellent example of how this Government is helping to create the right environment for industry. Moreover, it is another sure sign that the UK’s auto sector continues to go from strength-to-strength and is open for business.”